Cloud Consumption - 5 Biggest Challenges to Master

Cloud Consumption

5 Biggest Cloud Challenges to Master

Keep Control of Your Cloud Costs – 5 Biggest Challenges to Master

The issue of cloud consumption and its associated challenges can be illustrated quite well using the following analogy: Imagine ten tenants moving into your newly built house on the same day. After one year, the utilities provider sends you a bill for $10,000. Now you have to tell the tenants that they have each used electricity for $1,000. That will inevitably cause trouble. Would anyone honestly proceed in this way? Astonishingly, there are plenty of companies that apply precisely this method when it comes to controlling their cloud spending, which is, of course, commercial madness. This article provides a lowdown on the most important aspects of cloud spend management.

When Cloud Consumption is Like a House Without an Electricity Meter

Tenants who have installed separate air conditioning units in each of their four rooms, kitchen and bathroom will probably be delighted. But the one tenant who had spent the year on sabbatical – without having once switched on even a lamp in the apartment over the last twelve months – will no doubt pay you a visit to discuss the tenancy agreement. Now to the cloud.

Nobody would ever consider managing the allocation of consumption costs – cloud consumption in our case – using this method. They would certainly not do so after a year – as in our example – or even after six months. Instead they would agree to certain terms a long time before the “rental project” even began. In fact, electricity meters and other equipment need to be installed beforehand.

Unbelievably, many companies approach their “cloud projects” in precisely this way, completely unprepared, just like our landlord.

The Five Most Common Problems

The five problems that occur most frequently are closely intertwined, with each issue leading inevitably into the next one.

But first things first. Cloud use is inherently dynamic, so unfortunately a certain degree of unpredictability will always be a feature of cloud budgets, which is the first issue. The second problem is directly related: higher cloud costs than originally anticipated. Even that would be manageable – were it not to lead us straight to problem number three: cloud spend management will only succeed if there are also insights and visibility into who is spending what within your organization. But rising to this challenge will only be possible if the fourth problem, the administration of multi-cloud environments, has also been tackled adequately. In turn, this will only succeed if another issue has been dealt with properly at some point, namely the lack of a clearly defined cloud strategy.

How to Cope With these Problems

Only effective cloud spend management can give you the insight and visibility you need to optimize your current cloud resources and cloud consumption, plan future cloud spending and control your budget, while also avoiding pitfalls like unplanned cost overruns and maintaining control of your cloud environment. It will also enable a reduction in unpredictable cloud spend using a consumption-based approach. What’s more, users will also be in a position to track current usage of cloud resources, forecast future usage and optimize cloud budgets. Here are some of the things you ought to bear in mind. Gain insight into your cloud usage and spend within your multi-cloud environment. Identify wasted and underutilized resources and realize potential cost savings. Track cloud usage and get a clear view of how your company is using cloud resources across different business units. This is where centralized, cross-vendor tagging helps you improve the management of your cloud resources. To do this, you must convert data into actions. Understand business needs, track usage and assign cloud costs to the right business units. Identify cost savings, align your cloud investments, improve compliance and enable better security of cloud resources.

Solving these Problems with PyraCloud

One tool that enables central implementation of all these measures is the PyraCloud platform by SoftwareONE. As your cloud consumption increases, PyraCloud allows you to scale with your business needs. PyraCloud allows you to define your organization structure so you can view your global consumption by geography, business unit, cost center or project. You can then allocate budgets across your business, identify and tag cloud resources being used across various cloud platforms and chargeback cloud consumption to the parts of the business using them. PyraCloud also provides recommendations and alerts so you can optimize your cloud environment and be notified of any spikes in consumption. In summary, PyraCloud gives you the insights and visibility you need to effectively manage your cloud spend.

Looking for More Information About PyraCloud?

Visit our PyraCloud website to read all facts and benefits and to find out how to maximize the value of your software portfolio with a single platform.

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  • PyraCloud
  • SaaS, Strategy

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Welcome to the new PyraCloud
  • 27 October 2020
  • Dawn Clifton
  • PyraCloud, Cloud Spend Management, Digital Supply Chain
  • Software Spend, Cloud Cost Optimization, FinOps

Welcome to the New PyraCloud!

We are excited to announce that we have made some significant changes to PyraCloud based on feedback from users like you.